Diamond Hill Correlations

DIAMX Fund

USD 28.40 0.02 0.07%

The current 90-days correlation between Diamond Hill Long and Neuberger Berman Long is 0.57 (i.e., Very weak diversification). The correlation of Diamond Hill is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Diamond Hill Correlation With Market

Poor diversification

The correlation between Diamond Hill Long Short and DJI is 0.7 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Long Short and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Diamond Hill Long Short. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with Diamond Mutual Fund

1.0	DHLSX	Diamond Hill Long	Pair Corr
1.0	DIAYX	Diamond Hill Long	Pair Corr

Moving against Diamond Mutual Fund

0.34	CLM	Cornerstone Strategic	Pair Corr
0.33	QLERX	Aqr Long Short	Pair Corr
0.38	KMKNX	Kinetics Market Oppo Steady Growth	Pair Corr
0.31	CRF	Cornerstone Strategic	Pair Corr

Related Correlations Analysis

	NLSCX	NLSIX	DIAMX	PWLMX
NLSCX		1.0	0.0	0.26	NLSCX
NLSIX	1.0		-0.03	0.25	NLSIX
DIAMX	0.0	-0.03		0.38	DIAMX
PWLMX	0.26	0.25	0.38		PWLMX
	NLSCX	NLSIX	DIAMX	PWLMX

Click cells to compare fundamentals

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

NLSIX	+ 1.0	NLSCX
PWLMX	+ 0.38	DIAMX
PWLMX	+ 0.26	NLSCX
PWLMX	+ 0.25	NLSIX
DIAMX	+ 0.0	NLSCX

High negative correlations

DIAMX	- 0.03	NLSIX
DIAMX	- 0.0	NLSCX

Risk-Adjusted Indicators

There is a big difference between Diamond Mutual Fund performing well and Diamond Hill Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Diamond Hill's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NLSCX	0.21	(0.01)	(0.27)	0.09	0.23	(0.22)	0.46	(0.57)	1.20
NLSIX	0.21	0.00	(0.28)	0.11	0.23	(0.22)	0.44	(0.54)	1.19
DIAMX	0.33	(0.08)	0.00	(0.07)	0.00	0.00	0.73	(0.74)	2.23
PWLMX	0.27	0.01	(0.26)	0.21	0.25	(0.35)	0.61	(0.49)	1.84

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